If You Are Currently Receiving A Spouse Annuity

If you are currently receiving a Spouse annuity from the Railroad Retirement Board (RRB), you do not need to file an application for benefits; however, proof of death must still be submitted. After we have received all necessary information, your annuity will be converted to a Widow(er)'s annuity.

You should carefully review the information in this booklet and booklet RB-9s, Events That Affect A Survivor Annuity. There is important information in these booklets concerning the events that may affect your annuity and how to report these events.

The RRB annuity that you are currently receiving will continue until we have converted your annuity.

Beginning Date Of A Widow(er)'s Annuity

The beginning date of your annuity depends on several factors: the type of Widow(er)'s annuity for which you are applying, your age, and the date your application is filed at the RRB.

If you are applying for an annuity based on your age, your annuity can begin on the latest of the following dates.

• If you have attained full retirement age in the month of filing:
  • The month the employee died.
  • The month you attained full retirement age.
  • The month preceding the month you attained full retirement age if the employee died in that month and you are a remarried widow(er) or surviving divorced spouse.
  • Six months before the month in which you file the application, but not before you attain full retirement age.
  • The month your remarriage ends if you are a remarried widow(er) or surviving divorced spouse who remarried before age 60.
     
• If you are under full retirement age in the month of filing:
  • The month the employee died.
  • The month you became age 60.
  • The month in which you file your application.
  • The month your remarriage ends if you are a remarried widow(er) or surviving divorced spouse who remarried before age 60.
  • Six months before the month in which you file the application if you are a widow(er) between ages 60 and 62.

Beginning Date Of All Other Types Of Annuities

The annuity can begin on the latest of these three dates:

• The month the employee died.
• The month all necessary requirements for an annuity are met.
• Six months before the month in which an application is filed.

Effect Of A Monthly Annuity On Other Railroad Retirement Board Benefits

If the employee is survived by anyone eligible for an insurance annuity in the month in which the employee died, no lump-sum death benefit will be paid by the RRB.

If you are eligible to receive an annuity from the RRB based on your own railroad service, both that annuity and your survivor annuity will be paid to you, although an adjustment will be made in the amount of the survivor annuity.

If you are eligible to receive a Spouse annuity on another claim number or another survivor annuity (i.e., a Widow(er)'s annuity or Parent's annuity) from the RRB, only the higher annuity will be paid.

How Earnings Affect An Annuity

Refer to Form G-77, How Earnings Affect Payment of Survivor Annuities, for the annual earnings exempt amounts.

The term "annual earnings exempt amount" means the amount of money you can earn in a year without losing part of your annuity.

You may lose part of your annuity if you earn more than the annual earnings exempt amount in a year. An annuitant who has attained full retirement age (FRA) is not affected by this provision. See Introduction for a definition of full retirement age.

There is also a "monthly earnings exempt amount" which is 1/12 of the "annual earnings exempt amount." The "monthly earnings exempt amount" applies only in the first year in which:

• you are entitled to an annuity; and
• you have a "nonwork" month.

A "nonwork" month is one in which:

• you do not work; or
• you work but earn less than the "monthly earnings exempt amount"; or
• you work in self-employment but do not perform "substantial services."

Example: A widow's annuity began 8-1-2000. She earned $40,000 before her retirement in July. Because she was entitled to an annuity and had nonwork months in 2000 (August through December), 2000 is the widow's grace year. The monthly earnings test allows payment of her annuity August through December, even though her earnings of $40,000 would have caused deductions under the annual earnings test.

To determine whether you perform "substantial services" in self-employment, the RRB considers:

• the amount of time you devote to the business;
• the type of business;
• the type of service performed; and
• how all this compares to the work you did before you applied for your annuity.

When you figure your annual earnings, count all earnings from employment and self-employment for the entire year.

Earnings from employment include all wages, salaries, vacation pay, commissions, bonuses, fees, tips and retroactive wage increases. The cash value of any goods or services (such as meals or living quarters) furnished you for services performed are also counted as earnings from employment. Count all amounts before any payroll deductions for taxes, social security, insurance premiums and so on.

Earnings from self-employment mean your net income (profit after deduction of allowable business expenses) for the year.

Do not include as earnings any money which you receive for any reason other than work, such as:

• interest from savings;
• income from investments-stocks, bonds, real estate; gifts;
• inheritances; or
• pensions or other retirement payments.

In the calendar year you attain full retirement age, for every $3.00 you earn over the "annual earnings exempt amount," up to the month you attain full retirement age, $1.00 is deducted from your annuity. If you have not attained full retirement age, for every $2.00 you earn over the "annual earnings exempt amount" in a calendar year, $1.00 is deducted from your annuity.

Credit For Employee's Military Service

If the employee was never in the military service, go on to the next section.

If the employee served in active duty in the United States Armed Forces, the RRB may be able to use that military service to increase your annuity.

Creditable military service can be counted as if it were railroad service if the following conditions are met:

• The employee performed creditable railroad service in the same or preceding year in which the military service began.
• The military service was involuntary.

Voluntary service is only creditable when such service was entered during a war period. Special rules may apply if the military service was from June 15, 1948, through December 15, 1950. Contact the local field office if this situation applies.

If the military service cannot be counted as railroad service, it still might be countable as wage credits. The RRB will determine if the military service is creditable, and also determine the most advantageous way to count it.

Payments Received After The Employee's Death

Any annuity payments received after the employee's death are not payable and should be returned. If the employee was receiving his or her annuity by check, the check can be returned to the nearest field office of the RRB or to the address shown on the envelope. If the annuity payments were being sent directly to the employee's financial institution, that institution will return the funds after they are notified of the employee's death.